Benzinga | Nov 11, 2021 04:39PM EST

Generation Income Properties Announces Agreement For Pending 7-Eleven Portfolio Acquisition

Generation Income Properties, Inc. (NASDAQ:GIPR) ("GIP" or the "Company") announced the signing of a definitive Purchase and Sale Agreement under which the Company will acquire a leasehold portfolio of three single-tenant retail buildings in Austin, Texas for total consideration of approximately $8 million. The three buildings are occupied by 7-Eleven, Inc., which currently holds an investment grade credit rating of A on the Standard & Poor's scale. The portfolio has an average term of approximately 9 years remaining on its initial leasehold term, with the option for the tenant to renew for two (2) five (5) - year periods, and an average of 4 years remaining on the initial ground lease term with the option for the Company to renew for three (3) five (5) year periods. The leasehold portfolio has an annualized base rental income of approximately $1.1 million, with ground rent of approximately $511,000 annually.

The Company expects to fund the acquisition with approximately 50% cash and 50% debt. The transaction is subject to customary closing conditions and due diligence. David Sobelman, President and Chief Executive Officer of GIP, noted, "This portfolio represents our continued focus on acquiring high-quality, credit-rated assets with opportunistic lease terms in high-density markets. We are eager to add three more 7-Eleven properties to our portfolio, given the strong relationship built with our existing stores and the strength of the tenant."